2008 Woodie Awards
'Governator' revises plan to cut community college budget
Daniel Gamberg
Issue date: 6/2/08 Section: News
Each year, California community colleges receive a portion of their funding from property taxes. However, the current economic downturn has lowered property tax revenue, jeopardizing community college funds.
The governor's May revision will redistribute $69 million in one-time funds to California community colleges to backfill the expected property tax deficit. The appropriated funds are expected to be accessible during the upcoming fiscal year, beginning July 1.
In January, the governor proposed across- the-board cuts to categorical programs, or programs whose funding is reserved for specific purposes, resulting in an $80 million reduction.
Categorical programs vary from services for the disabled to maintenance and special repairs. The reductions in some programs resulted in a more than 10 percent deficit compared to the previous year's budget level.
Policy adjustments in the governor's May revision allow community colleges flexibility to fund categorical programs. Up to 20 percent of program funds can be transferred into other programs to increase funding to a maximum of 25 percent, thereby allowing colleges to transfer funds between programs to improve local program needs.
To further close the budget gap, Gov. Schwarzenegger proposed a plan to borrow from financial investors in exchange for 30 years of state lottery profits, which he says could generate $15 billion over three years.
At the moment, lottery revenue is earmarked to support the state's educational fund, providing the governor the means to gradually instate the plan. Should the plan fail, the governor has a supplemental plan to increase sales tax by 1 percent for the next three years, resulting in $6 billion each year.
The January cuts were widely disputed, ultimately leading to a statewide educational protest by students and faculty on April 21 in Sacramento, which many believe made a strong impact on this decision.
Daniel Gamberg is the assistant copy editor for La Voz. Contact him at danielgamberg@lavozdeanza.com.
The governor's May revision will redistribute $69 million in one-time funds to California community colleges to backfill the expected property tax deficit. The appropriated funds are expected to be accessible during the upcoming fiscal year, beginning July 1.
In January, the governor proposed across- the-board cuts to categorical programs, or programs whose funding is reserved for specific purposes, resulting in an $80 million reduction.
Categorical programs vary from services for the disabled to maintenance and special repairs. The reductions in some programs resulted in a more than 10 percent deficit compared to the previous year's budget level.
Policy adjustments in the governor's May revision allow community colleges flexibility to fund categorical programs. Up to 20 percent of program funds can be transferred into other programs to increase funding to a maximum of 25 percent, thereby allowing colleges to transfer funds between programs to improve local program needs.
To further close the budget gap, Gov. Schwarzenegger proposed a plan to borrow from financial investors in exchange for 30 years of state lottery profits, which he says could generate $15 billion over three years.
At the moment, lottery revenue is earmarked to support the state's educational fund, providing the governor the means to gradually instate the plan. Should the plan fail, the governor has a supplemental plan to increase sales tax by 1 percent for the next three years, resulting in $6 billion each year.
The January cuts were widely disputed, ultimately leading to a statewide educational protest by students and faculty on April 21 in Sacramento, which many believe made a strong impact on this decision.
Daniel Gamberg is the assistant copy editor for La Voz. Contact him at danielgamberg@lavozdeanza.com.
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